We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
DISH Network (DISH) Q4 Earnings: Is Disappointment in Store?
Read MoreHide Full Article
DISH Network Corp. – the second largest satellite TV operator in the U.S. – is slated to report fourth-quarter 2016 financial numbers before the opening bell on Feb 22.
Over the past three months, shares of DISH Network marked a growth of 11.96% compared with the Zacks categorized Cable TV industry’s growth of 13.29%.
Last quarter, DISHNetwork posted a negative earnings surprise of 7.25%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 114.39%.
Let’s see how things are shaping up for this announcement.
Factors at Play
DISH Network’s top-line growth may remain under pressure as its failure to strike any deal with wireless operators to deploy a nationwide wireless network has been a major headwind. Persistent loss of subscribers remains a potent headwind for DISH Network. Also, the company may be affected by its failure to renew long-term programming contracts on favorable pricing and other economic terms. Also, escalating programming and content expenses as well as retransmission fees may also hurt the company’s margins.
We are, however, impressed by DISH Network’s efforts to diversify its business model from being a pure-play satellite-TV operator to an Internet TV operator should help the company counter competitive threat from low-cost video streaming operators. The company is poised to benefit from its Internet TV service – Sling TV – which offers services at a reasonable rate. The flexible cash and liquidity position of the company further opens up scope for investments.
We also appreciate DISH Network’s plans to boost subscriber addition for its Sling TV service this holiday season. The pay-TV giant has partnered with Wal-Mart Stores Inc. (WMT - Free Report) , Best Buy Co., Inc. (BBY - Free Report) and GameStop Corp. (GME) to promote the sale of its Sling TV gift cards.
Earnings Whispers
Our proven model does not conclusively show that DISH Networkis likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: DISH Network has an Earnings ESP of -4.55%. This is because the Most Accurate estimate stands at 63 cents while the Zacks Consensus Estimate is pegged higher at 66 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: DISH Network has a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here is a company in the Zacks-categorized broader ‘Consumer Discreationary’ sector that has the right combination of elements to post an earnings beat this quarter.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 4.29%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
DISH Network (DISH) Q4 Earnings: Is Disappointment in Store?
DISH Network Corp. – the second largest satellite TV operator in the U.S. – is slated to report fourth-quarter 2016 financial numbers before the opening bell on Feb 22.
Over the past three months, shares of DISH Network marked a growth of 11.96% compared with the Zacks categorized Cable TV industry’s growth of 13.29%.
Last quarter, DISH Network posted a negative earnings surprise of 7.25%. However, the company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 114.39%.
Let’s see how things are shaping up for this announcement.
Factors at Play
DISH Network’s top-line growth may remain under pressure as its failure to strike any deal with wireless operators to deploy a nationwide wireless network has been a major headwind. Persistent loss of subscribers remains a potent headwind for DISH Network. Also, the company may be affected by its failure to renew long-term programming contracts on favorable pricing and other economic terms. Also, escalating programming and content expenses as well as retransmission fees may also hurt the company’s margins.
We are, however, impressed by DISH Network’s efforts to diversify its business model from being a pure-play satellite-TV operator to an Internet TV operator should help the company counter competitive threat from low-cost video streaming operators. The company is poised to benefit from its Internet TV service – Sling TV – which offers services at a reasonable rate. The flexible cash and liquidity position of the company further opens up scope for investments.
We also appreciate DISH Network’s plans to boost subscriber addition for its Sling TV service this holiday season. The pay-TV giant has partnered with Wal-Mart Stores Inc. (WMT - Free Report) , Best Buy Co., Inc. (BBY - Free Report) and GameStop Corp. (GME) to promote the sale of its Sling TV gift cards.
Earnings Whispers
Our proven model does not conclusively show that DISH Networkis likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: DISH Network has an Earnings ESP of -4.55%. This is because the Most Accurate estimate stands at 63 cents while the Zacks Consensus Estimate is pegged higher at 66 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: DISH Network has a Zacks Rank #4 (Sell). Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
DISH Network Corporation Price and EPS Surprise
DISH Network Corporation Price and EPS Surprise | DISH Network Corporation Quote
Key Pick
Here is a company in the Zacks-categorized broader ‘Consumer Discreationary’ sector that has the right combination of elements to post an earnings beat this quarter.
Cinemark Holdings Inc. (CNK - Free Report) is expected to release fourth-quarter 2016 results on Feb 23, 2017. The company has an Earnings ESP of +2.38% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s earnings surpassed the Zacks Consensus Estimate in three of the previous four quarters, with an average beat of 4.29%.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>